Companies House Update
Big changes to small company accounts are coming — here’s what you need to know
From April 2028, small companies and micro-entities face new rules on what they must file at Companies House. We’ve broken it all down in plain English.
Background
What’s changing and why
For years, small companies and micro-entities have enjoyed relatively light-touch filing requirements at Companies House. Many have been able to file a simple balance sheet — a snapshot of what the business owns and owes — without having to show their profit and loss account (the part that reveals how much the business actually made or lost during the year).
That’s about to change. The Economic Crime and Corporate Transparency Act 2023 was passed with the aim of making the Companies House register more transparent and harder to abuse. As part of this, the government has confirmed that small companies and micro-entities will need to file profit and loss accounts from April 2028.
The announcement was confirmed on 9 June 2026, following an earlier proposal in summer 2025 that was paused after businesses raised concerns. The government listened, made some important adjustments, and has now confirmed its revised approach.
The big question
Do you now have to show your profits publicly?
This was the main concern raised by business owners — and understandably so. The idea of competitors, customers, or suppliers being able to see exactly how profitable your business is can be uncomfortable. The good news is that the government has responded to these concerns.
Key concession
Small companies and micro-entities will be able to opt out of having their profit and loss account published on the public Companies House register. You’ll still have to file it — but you won’t have to make it publicly visible.
Where you opt out, your profit and loss account will only be accessible to Companies House itself, law enforcement, and HMRC. HMRC already receives your full accounts as part of your corporation tax return anyway, so that’s nothing new.
The detail of exactly how the opt-out process will work hasn’t been published yet, but we’ll keep you updated as soon as it is. We’d expect the majority of our small business clients to take advantage of this option.
If you choose not to opt out, your accounts will be publicly visible — which the government suggests could help with things like accessing finance or demonstrating financial health to suppliers and customers.
What’s being removed
The end of abridged accounts
Currently, some small companies prepare what are known as abridged accounts — a condensed version that doesn’t include certain information (like the profit and loss account), provided all shareholders agree each year. This option is being removed.
From April 2028, you’ll need to file full accounts. Given that the opt-out on the profit and loss account is available, the removal of abridged accounts is less of a concern in practice. And for many businesses, it actually removes a bit of annual admin — no more chasing shareholders for written consent every year.
Note for larger “small” companies
More businesses now qualify as “small” following increases to the size thresholds that came into effect for accounting years starting on or after 6 April 2025. If your business was previously classed as medium-sized and has now moved into the small category, these filing changes apply to you too.
How you’ll need to file
Accounts must be filed digitally using approved software
From April 2028, accounts must be filed using commercial software in a format called iXBRL. You don’t need to worry about what that stands for — it’s essentially a structured digital format that makes financial data machine-readable by Companies House.
Crucially, Companies House will close its free web filing and paper filing routes for accounts. This means you won’t be able to file accounts directly through the Companies House website or by post anymore.
If your accounts are currently filed through us, nothing changes for you — we use compliant software and will handle this. If you file your own accounts directly, you’ll need to make sure you have access to approved software before April 2028. We’re happy to take this over for you if you’d like.
Additional changes
Other changes worth knowing about
The Act originally required small companies to file a directors’ report alongside their accounts. This requirement has now been dropped. The government has said it will eventually remove the directors’ report requirement for all companies as part of a broader simplification programme. Micro-entities haven’t needed to include one since 2016, so there’s no change for those businesses.
At the moment, a company can shorten its accounting year as often as it likes. This has sometimes been used to buy extra time when a filing deadline looks tight. Under the new rules, you’ll only be able to shorten your accounting period once every five years — the same rule that already applies to lengthening it. Special permission would be needed to do it more often. This change hasn’t come into force yet but is expected as part of the wider rollout.
If your company claims an exemption from having its accounts audited (as most small companies do), you’ll need to include a more detailed eligibility statement confirming which exemption you’re relying on and that you genuinely qualify for it. This is about transparency — it won’t affect your entitlement to the exemption if you already meet the criteria. We’ll handle this as part of preparing your accounts.
Timeline
Key dates
Economic Crime and Corporate Transparency Act became law.
New company size thresholds took effect — more businesses now qualify as “small”.
Companies House confirmed the revised April 2028 implementation date and announced the opt-out mechanism for public disclosure of profit and loss accounts.
Companies House to publish details of how the opt-out process will work in practice. We’ll update you as soon as this is confirmed.
New rules take effect. Profit and loss accounts must be filed. Mandatory iXBRL digital filing via commercial software. Companies House web and paper filing routes for accounts close.
Action points
What to do now
April 2028 might feel like a long way off, but there are things worth thinking about now — and we’ll be in touch as more details are confirmed by Companies House.
Talk to us about commercial sensitivity
Once the opt-out details are confirmed, we’ll be advising all eligible clients on whether to exercise it. If keeping your financials private is a priority, do flag this to us now.
Check how you currently file
If you or anyone in your business currently files accounts directly via the Companies House website, that route will close in 2028. We can take this over for you.
Think carefully before changing your year-end
If you’re considering shortening your accounting year, speak to us first. The ability to do this repeatedly is likely to be removed under the new rules.
Stay in touch
We’ll send updates as the opt-out process and remaining regulations are confirmed. If you have questions in the meantime, just get in touch with the team.
Questions about how these changes affect your business? The Taxlab team is here to help.
Get in touch with usThis article is for general information purposes only and does not constitute legal or financial advice. Information is correct as at June 2026 and is subject to change as further guidance is published by Companies House. Taxlab Limited is an ACCA-supervised firm of chartered certified accountants registered at 95 South Bridge Street, Bathgate, West Lothian, EH48 1TJ. © Taxlab Limited 2026.